cosigned loan and bankruptcy

I have a loan on which my sister has co-signed and this creditor has put a on her house. I’m wondering if I were to claim bankruptcy does this affect her? Will a bankruptcy remove the lien? Can she lose her house or have to pay out the loan?

Posted on Monday, January 5, 2009 | Filed under: Bankruptcy
 posted by Questions @ 8:38 am 1 Comment
1 Expert Comment:

 At January 6, 2009 | 7:01 am , Barton Goth, Trustee in Bankruptcy Said...

If you file a bankruptcy and have a debt your sister has cosigned on then you will legally be released from this debt and your sister will be fully responsible. Once this happens the creditors will focus all their collection efforts on your sister. This could include garnishment, seizure of assets etc. Now typically a lien on a house will simply sit there until the property is sold, so the bankruptcy likely won’t change much there, but she will definitely have to deal with this outstanding loan at some point.

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